Washburn Law WALTR

Fifth Circuit Vacates Sirius Solutions

As some of you know, I have been a vocal critic of the Fifth Circuit's January decision in Sirius Solutions which allowed managing partners in a limited partnership to avoid s.e. tax on their distributive shares. The day the opinion came out I drafted legislation for the Congress to consider that would have vacated the court's decision.

Well, there's no need to wait for Congress to act. The court has vacated its earlier opinion and issued a new opinion that more closely aligns with the Tax Court's historic position on the matter - it involves IRC Sec. 1402(a)(13).

It's the topic of my latest Substack article that you can read (with implications for the future at mceowenaglawandtax.substack.com But remember, there are still two other circuits that have cases pending on the same issue. So, stay tuned.

Kansas Ag Report

The second show of the revamped Kansas Ag Report is now on YouTube for you to watch in case you missed it over the weekend. Top ag headlines, markets with Darrell Holoday a KSU feature and our Ag Advisors commentary (Paul Neiffer and myself) talking overlooked tax and legal issues by farmers.

You can watch it here:

Big Changes Are Coming for Farmers | Kansas Ag Report | August 8, 2026 What could impact your farm’s bottom line next? This week on the Ka...

TWO NEW ARTICLES: THE ECONOMICS AND THE LAW OF AGRICULTURE
What happens when we look at agriculture through the wrong lens?

In one new blog article, I examine why a bad wheat crop is not necessarily the same thing as a farm economic collapse. A poor commodity year can create serious financial pressure, but the financial health of a farm operation depends on much more than one crop - including working capital, debt, equity, diversification, crop insurance and the overall financial structure of the operation.

In the other, I take a look at why agricultural law is often “law by the exception.” Congress and state legislatures have created specialized rules for agriculture because farming is fundamentally different from most other businesses. Yet courts sometimes apply ordinary legal principles without recognizing those agricultural exceptions.

The common thread is this: agriculture is different. Whether we're talking about farm economics or agricultural law, looking at farming through a conventional lens can lead to the wrong conclusions.

I explore both issues in these two new articles. If you work in agriculture, own farmland, farm or ranch, or advise agricultural producers, I think you'll find both worth reading.

This week you can hear me on KSU radio (KFRM) on Wednesday morning. I'll also be on RFD-TV this week (not sure of which day yet) and the topics for the national daily radio program are as follows: 1) Minority Shareholder Oppression; 2) Climate Disclosure Rules; 3) Shareholder Loans - The Risk of Constructive Dividends; 4) Be Careful of Early Terminating a QTIP Trust; and 5) A Missing Name Doesn't Always Void a Mortgage.

I am back from doing a two-day conference in Utah for practitioners from all across the country. The location was where three Hallmark Christmas movies have been filmed. It was a beautiful location near where the winter Olympics were held in 2008. Next up are Mississippi and Alabama next week.

You may read the articles at the following links: https://agriculturallaw.lawprofessorsblogs.com/2026/08/agricultural-law.html

and

https://agriculturallaw.lawprofessorsblogs.com/2026/08/a-bad-wheat-crop-is-not-a-farm-economic-collapse.html

Kansas Ag Report

If you farm, ranch, or simply want to stay on top of what's happening in agriculture, you won't want to miss this weekend's Kansas Ag Report, hosted by Brityne Rucker.

We'll cover:
* Why the Senate Farm Bill has stalled again.
* The renewed push for mandatory country-of-origin labeling
for beef.
* Why the Kansas City Fed says beef prices could remain high for
years.
* What rising cash rents, grain storage concerns, and higher
health insurance costs could mean for producers heading into
2027.

We’ll also feature a special conversation with market analyst Darrell Holaday, sharing insights and perspective you won’t want to miss. Plus, we’ll recognize the outstanding career of K-State's Richard Llewelyn as he reflects on decades of service to Kansas agriculture.

And don't miss our Ag Advisors segment, where Paul Neiffer and I discuss tax and legal issues that could save you money and help you avoid costly surprises.

Join us this weekend for the latest agricultural news, market insights, and practical information you can put to work on your operation.

The Kansas Ag Report airs Saturday mornings at 5:00 a.m. on FOX 14/KFJX (Pittsburg); 5:30 a.m. WIBW-13 (Topeka) and
6:00 a.m. — KSCW-33 (Wichita) and elsewhere across the state. Check your local listings.

Starting at 6:00 a..m. tomorrow morning, you can also find the program on our Youtube channel. Just search Youtube for the "Kansas Ag Report." See less

Endangered Species Act Developments and... New TV Program!

The Endangered Species Act continues to reshape agriculture—and the latest developments could significantly affect how farmers, ranchers, and rural landowners operate.

In my newest blog article, I examine three major ESA developments:

• A new federal rule that narrows the definition of "harm" and restores a more common-sense reading of the statute.
• A proposal giving states greater authority to manage grizzly bears when livestock and public safety are at risk.
• A federal court decision that reinstates broader ESA regulations, potentially increasing permitting delays, consultation requirements, and litigation risks for agricultural projects.

These changes underscore the continuing tension between species conservation and private property rights - and why every agricultural producer needs to stay informed.

Read the full analysis to see what these developments mean for your operation and for the future of agricultural law. You can access the article here: https://agriculturallaw.lawprofessorsblogs.com/2026/07/esa-developments-continue-to-shape-agriculture.html

Also, for those of you in Kansas, I'd like to announce the restart of the Kansas Ag Report that airs on TV stations across Kansas. Earlier this summer myself and my business partners acquired the Kansas Ag Report. The first episode airs tomorrow morning, August 1. Brityne Rucker is the host and executive producer. She is a KSU grad and formerly of KWCH TV in Wichita. The show will include leading ag-related news stories, a market report from Darrell Holaday and my colleague Paul Neiffer and I discussing ag law and tax issues for about 8-9 minutes in segment, "The Ag Advisors."

There will also be a feature each week focusing on KSU Extension and Research. This week that feature will celebrate the Extension career of Sandra Wick, a true gem in the KSU Extension system for over 30 years. And many thanks to Wyatt Thompson (the "Voice of the Wildcats") who does our voiceovers.

Thanks to the hard work of our digital producer Jes VanFossen, we also will be rolling out a new website. When it is finished, it will have the following features:

*Kansas agriculture news organized by specialized coverage desk
*Original television programming and permanent episode archives
*Fast article-and-video search
*Breaking-news and urgent agriculture alerts
*Markets, weather, livestock, crops, policy, tax, trade, and biosecurity coverage
*Topic hubs and journalist profiles
*Continue Watching and saved local video progress
*Video chapters, resume playback, and next-episode playback
*Upcoming Kansas agriculture events
*Source links, corrections, disclosures, and editorial standards
*Mobile-responsive design with light and dark modes
*Easy sharing by link, social media, email, device sharing, and print
*News-tip, event, correction, and advertising contact forms
*Clearly labeled sponsor and partner content
*Newsletter registration and moderated community engagement once connected

The program airs at 5:30 a.m. tomorrow (Saturday) morning on WIBW, Channel 13 in Topeka, 5:00 a.m. (central) on Fox 14 in Pittsburg and 6:00 a.m. in Wichita on KSCW at 6:00 a.m. Other stations across Kansas also carry the program.

Next week my daily national radio program topics will be: 1) Paying Wages to Children; 2) Legal and Tax Issues with H-2A Workers; 3) The FSA 66.67 Test and Farm Equipment Sales; 4) The Perils of "Simplifying and Estate Plan; and 5) The Illiquidity Problem of Farm and Ranch Estates.

You can hear me on WIBW 580AM Monday morning, August 3, with Greg Akagi on the 6:00 a.m (central) Ag Issues Program. I will be remote from Utah where I am doing a two-day seminar. Later on Monday morning I'll be on RFD-TV at 11:00 a.m. (central) - I'll be discussing the "Nitrogen Paradox."

May your week next week be great!

Agricultural Labor - H-2A Workers

If your farm employs H-2A workers - or you advise clients who do - it's an area where small mistakes can lead to big tax problems.
The tax rules for H-2A employees are very different from those that apply to most U.S. workers. Questions about income tax withholding, F**A, FUTA, Form 943 reporting, tax treaties, housing and meals, and estimated tax payments routinely create confusion for employers and tax professionals alike.

In my latest Agricultural Law and Taxation Blog article, I explain the key rules, identify common compliance pitfalls, and offer practical guidance for CPAs, attorneys, payroll professionals, and agricultural producers.

As H-2A labor becomes increasingly important to American agriculture, understanding these rules is essential. The link to the article is provided below.

The topics for my national daily radio program this week are: 1) FSA’s Explanation of the Payment Limitation Rule Changes; 2) Challenging FSA Determinations; 3) Ranchland Purchased by Conservation Organizations; 4) Blockchain and Estate Planning; 5) Habitat “Harm” and the Endangered Species Act.

You can also hear me on the KSU radio network on Wednesday's "Agriculture Today." I'll be talking about blockchain and cryptocurrency and estate planning and what it all means.

Here's the link to the blog article: https://agriculturallaw.lawprofessorsblogs.com/2026/07/h-2a-workers.html

May you all have a good week.

The "Nitrogen Paradox"

Why nitrogen prices stay high when natural gas is cheap. It's a paradox that impacts tax planning and management.

You may access my article at mceowenaglawandtax.substack.com

Challenging FSA Actions in Court

If the Farm Service Agency exceeds its legal authority, how long do you have to challenge it? The answer may surprise you. A recent U.S. Supreme Court decision has significantly changed the statute of limitations for many Administrative Procedure Act claims, giving farmers and ranchers a new opportunity to challenge unlawful FSA actions. Instead of the six-year clock beginning when the agency acted, it may now begin when the producer first suffers legal injury. That distinction can make all the difference for those affected by longstanding regulations or agency decisions.

In my most recent blog article, I explain the Supreme Court's ruling, how it applies to FSA actions, and what it means for agricultural producers seeking judicial review of agency overreach. If you've ever been told it's "too late" to challenge an FSA decision, this is an article you won't want to miss. I provide the link to the article below.

Tomorrow morning (Monday) you can hear me discuss this article and another one on regenerative agriculture and the Section 45Z tax credit with Greg Akagi on WIBW 580 AM shortly after 6 a.m. (cst). On Wednesday at 9:30 a.m. (cst) I'll be on RFD-TV.

The topics for this week's national daily radio program are as follows: 1) Regenerative Agriculture - Is it Really Voluntary?; 2) What the Tax Court Hasn't Decided; 3) Eminent Domain Case to the Supreme Court; 4) Colorado Water Eminent Domain Case; 5) Your Signature Isn't Just a Formality.

Here's the link to the blog article: https://www.lexblog.com/2026/07/18/statute-of-limitations-for-challenging-fsa-actions-that-exceed-agency-authority/

Who Really Decides How Far Eminent Domain Can Go?

Most people think eminent domain is simply about paying "just compensation." But in my most recent blog article, I discuss two recent court cases that could determine something even more important - how much power government (or government-authorized companies) has to take private farmland in the first place.

As new pipeline projects, carbon dioxide infrastructure, electric transmission lines, and municipal water systems spread across rural America, farmers and ranchers are finding themselves on the front lines of an expanding debate over private property rights.
One of these cases is now before the U.S. Supreme Court. Its decision could affect not only attorney's fees but also the balance of power between landowners and entities seeking easements across agricultural land.
If you care about constitutional property rights, family farms, or the future of rural America, you'll want to read this article. The issues extend far beyond one lawsuit - they could influence how courts interpret eminent domain authority for years to come.
Private property rights remain one of the foundations of American agriculture. The question is whether the courts will continue to protect them.

The link to the article is provided below.

This week you'll be able to hear me on KSU radio on Wednesday morning via KFRM. Also, I'll be on RFD-TV at some point, but I don't yet know the time. The topics for my national daily radio program this week are as follows: 1) Rights Inflation and Agriculture; 2) International Law and Agriculture; 3) Boundaries and Surveys (Part 1); 4) Boundaries and Surveys (Part 2); and 5) Estimated Tax and Machinery Sales. Thank you for listening, last week I heard from listeners in seven states seeking either additional information about what they heard or with questions.

Next week, on July 23, I'll be doing an all-day seminar for the Western Kansas Estate Planning Council in Hays. Let me know if you'd like additional information about that upcoming event.

May you all have a good week.

Here's the link to the blog article: https://agriculturallaw.lawprofessorsblogs.com/2026/07/why-two-eminent-domain-cases-could-reshape-property-rights-for-farmers-and-ranchers.html

Rights... Positive or Negative?

As we have celebrated the 250th anniversary of the nation, some activists are pushing for a "right to a healthy environment." It sounds nice, but what does it mean? My most recent blog article is an abbreviated version of my much more detailed article that is on my substack at mceowenaglawandtax.substack.com

You may read the blog version here: https://agriculturallaw.lawprofessorsblogs.com/2026/07/rights-property-and-the-constitution.html

Tomorrow morning you can hear me on WIBW 580AM with Greg Akagi shortly after 6 a.m. (central). We'll be talking about the new Kansas Community Property Trust Act. It's an important one for farmers and ranchers (and others) to know about.

This week's topics on my national daily radio show are as follows: 1) The Supreme Court's Roundup Decision; 2) Property Rights in Foreclosure; 3) International Law and Agriculture; 4) Legal Issues Associated with Data Centers; and 5) Generic Advice Can Cost You Thousands.

May you all have a great week.